Millions of households are set to benefit from two new types of support payments to address the rising cost of living. The upcoming Crisis and Resilience Fund, scheduled to launch in April 2026, will provide assistance to struggling households through cash payments, rent aid, food vouchers, and more. This fund will replace the expiring Household Support Fund by March 2026.
Under the Crisis and Resilience Fund, there will be two distinct payments available. The Crisis Payment, designed for individuals facing crisis situations, will have flexible eligibility criteria determined by local councils. This approach may lead to variations in available support based on geographic location, similar to the current Household Support Fund setup.
Recent guidance issued by the Department for Work and Pensions (DWP) emphasizes that Crisis Payment eligibility should not be restricted to benefit recipients. Instead, councils are encouraged to prioritize individuals experiencing sudden financial strains, unexpected expenses, or those at risk of financial hardship.
The Crisis Payment schemes are expected to prioritize cash-based assistance, including physical cash, bank transfers, and vouchers, primarily through an application process. In some cases, councils may opt to provide essential items like appliances or offer food vouchers to parents of children eligible for free school meals during the summer.
Additionally, the fund will introduce a new Housing Payment to replace the existing Discretionary Housing Payment. This payment aims to assist with various rental costs such as rent in advance, deposits, or moving expenses. Eligibility for the Housing Payment requires recipients to be receiving Housing Benefit or Universal Credit with housing cost coverage.
According to a Government spokesperson, the £1 billion multi-year Crisis and Resilience fund is part of the government’s commitment to addressing poverty and providing security and opportunities for families nationwide. The fund aims to empower local authorities to deliver emergency financial support efficiently and prevent households from falling into crisis.
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